Business in the field of advertising currently attracts a lot of investors both domestic and foreign investors. However, the establishment of a foreign-invested advertising company needs to be done through the mode of business cooperation between a domestic advertising company and a foreign partner. So, what is the procedure for Establishing a foreign-invested advertising company? Refer to the consulting content of LSX Law firm below to understand the necessary regulations
Enterprise Law 2020
Investment Law 2020
Advertising Law 2012
Regulations on establishment of foreign-invested advertising company
Pursuant to the provisions of the Enterprise Law, Investment Law, Advertising Law, Vietnam’s WTO commitments, foreign investors providing advertising services in Vietnam can do the following: cooperate, associate to establish advertising business with partners being domestic advertising companies in the following ways:
– Foreign investors who want to operate advertising services in Vietnam must conduct joint ventures with Vietnamese partners. Besides, foreign investors contribute capital to a joint venture with any ratio less than 100%, or cooperate under a business cooperation contract.
– The Vietnamese partner in the joint venture must be a company that has registered to provide advertising services in accordance with regulations.
– A joint venture between a foreign investor and a Vietnamese company is allowed to provide advertising services for all types of products, except cigarettes.
Investment form: Foreign investors can make investment in advertising enterprises in 02 forms as follows:
Option 1: Establish a Vietnamese company to provide advertising services registered by a Vietnamese partner. After that, the foreign investor buys shares or contributes capital to a Vietnamese company that has registered to do advertising business.
Option 2: Foreign investors learn and buy shares or capital contributions of a Vietnamese company that has registered to do advertising business and is doing advertising business in Vietnam.
In order to understand the process of setting up an advertising company and contributing capital to an advertising company of foreign investors, below we will detail the necessary procedures for implementation.
Procedures for establishing a foreign-invested advertising company
Procedures for setting up an advertising company with foreign capital include the following steps:
Step 1: Set up a Vietnamese company
The first procedure is to register a company in Vietnam with the business line of advertising.
The company dossier includes the following components:
- Business registration application form;
- Company rules;
- List of members of a limited liability company or a list of shareholders of a joint-stock company;
- A valid copy of one of the personal identification papers for the individual establishing the company;
- Certificate of business registration for organizations and enclosed with personal identification papers, power of attorney of the representative of the organization
- Decision on capital contribution of members being organizations;
Step 2: Foreign investors carry out procedures for registration of capital contribution, purchase of shares, and capital contribution to a Vietnamese advertising company
Capital contribution documents:
- Written registration for capital contribution, purchase of shares, capital contribution.
- Copies of people’s identity cards and identity cards of investors being individuals; copy of Certificate of Establishment, for investor being an organization;
- If the investor authorizes another person to submit the application and receive the result, the person carrying out the procedures for establishing a foreign-invested advertising company must present personal identification papers and the following papers:
Firstly, service provision contract between the Investor and the organization or investor
Secondly, authorization letter for individuals to carry out the procedures for establishing a foreign-invested advertising company
The agency that receives such dossier is the Investment Registration Office where the enterprise’s head office is located. Afterwards, 15-25 working days investors will receive the results. If the dossier is not valid, the investor is also notified of the request to amend and supplement the dossier.
The application is submitted at the Department of Planning and Investment – where the enterprise is headquartered. Afterwards, 03 – 06 working days, the company will receive the Certificate of Business Registration.